How Gen Z Has Seen Shifts in Spending

As of 2025, younger generations have yet to properly recover from the pandemic in the early 2020’s.  It is estimated that Gen Z now has the highest levels of delinquencies compared to previous generations. When comparing credit, debt, income, and assets, Gen Z also ranks as the worst – followed closely behind by Millennials. Because of this, many Gen Z youths rely much more heavily on credit and Buy Now, Pay Later (BNPL) options. 

This has led forecasters to anticipate Gen Z consumers spending almost 25% less during the holidays this year. In fact, consumers are estimated to have the lowest proportion of discretionary income since 2009. While this is certain to slow down how much product is flying off the shelves, there are usually some non-negotiable purchases during the holiday season. Family and children gifts rank as the 2 highest categories of spending, followed closely by items for holiday traditions.

For consumers, though, there is an easier way to make sure you have enough funds for the holiday season. Companies like Equifax offer a team of advisors to make it easy to manage your income and assets. Moreover, these professionals are able to analyze predicted trends to make sure your net worth is hedged against future hardships. 

Source: Equifax